From a People's Bank of China's quarterly report, some remarks from the Bank on policy:

  • will maintain normal monetary policy for as tong as possible
  • will keep macro leverage ratio basically stable
  • reiterates that prudent monetary policy will be more flexible and targeted
  • will improve the mechanism for preventing and dealing with bond default risks
  • China has no foundation for long-term inflation or deflation
  • will further implement the prudent management system for real estate finance
  • will keep yuan exchange rates flexible and let market play a decisive role in the formation of yuan rates

(Headlines via Bloomberg)

As I posted yesterday: